The technology M&A market in Spain reached a turning point in 2025. Following several years characterised by volatility and stretched valuations, the sector has evolved towards a more robust model, in which profitability, cash generation and strategic execution carry greater weight than growth expectations.
In this context, the Digital Services and IT sector has established itself as one of the main drivers of M&A activity in the technology sector, with a significant proportion of transactions taking place in the mid-market. For companies considering a potential sale of their technology business or investors interested in acquiring IT firms, understanding these dynamics is key to maximising value and minimising risks.
Drawing on our experience as M&A advisers specialising in technology, we analyse the key trends, deals and lessons that have shaped the market in 2025.
The M&A market in 2025: consolidation as the dominant strategy
The year 2025 has confirmed a clear trend: the technology sector is entering a phase of industrial consolidation.
Although the total volume of transactions has been slightly lower than in previous years, the capital raised has increased and transactions have become more complex. This reflects a structural shift in the market:
- Greater discipline in pricing and operational structures
- Focus on profitable companies or those with a clear EBITDA outlook
- Increase in competitive processes led by M&A advisers
- The growing prominence of Buy-and-build
For any sale of a technology company, this new environment calls for more rigorous preparation, where factors such as revenue quality, recurring revenue and operational scalability are key.
Digital infrastructure: the new strategic asset in tech M&A
One of the major drivers of investment in 2025 has been digital infrastructure, particularly data centres and connectivity networks. The growing demand driven by artificial intelligence, cloud computing and edge computing has made these assets key components of investment strategies.
Developments such as the entry of major industrial groups into the development and operation of data centres reflect a clear reality: value no longer lies solely in the software, but in the ability to process and host data efficiently and securely.
At the same time, the telecommunications sector has undergone a transformation aimed at monetising existing infrastructure, optimising capital structures and freeing up resources for new technologies such as 5G. For investors and strategic buyers, these transactions represent opportunities to gain access to assets with stable revenues and high growth potential.
IT services at the heart of the buying and selling of technology companies
The IT services and technology consultancy sector was undoubtedly the most dynamic in 2025. Its high level of fragmentation makes it the ideal arena for consolidation strategies.
Estrategias Buy-and-buildstrategies: growth through acquisitions
Izertis has been one of the most dynamic players in 2025. Through the acquisition of Icalia Solutions and ICATD, the company has managed to strengthen specific verticals in digital transformation and managed services. In the article in which we analysed the most notable technology M&A deals of October 2025 , we already discussed how the deal enables the consultancy firm to compete on larger-scale projects both nationally and internationally.
This approach enables:
- Rapidly scale up and expand our geographical presence
- To expand the value proposition
- To improve margins through synergies
For founders, this context presents clear opportunities to sell technology companies through structured processes where strategic fit is key.
International interest in the Spanish market
Spain has established itself as a priority market for European technology groups. The influx of international buyers is driven by factors such as:
- Quality of technological talent
- A dynamic business ecosystem
- Valuations remain attractive compared to other markets
The acquisitions made by the Italian group Lutech and by Koesio confirm the trend among pan-European groups seeking an IT services platform for SMEs in Spain. This trend underscores the importance of having M&A advisors with cross-border expertise, capable of connecting local companies with international investors and maximizing value in sale transactions.
Vertical Software and SaaS Specialization
Investor interest has continued to focus on vertical software companies and SaaS models, particularly those with recurring revenue and a strong presence in specific niches.
Among the most dynamic sectors are:
- HealthTech
- RegTech y compliance
- Cybersecurity
- Software for utilities and asset management
These companies exhibit high revenue recurrence, high barriers to entry, the ability to expand internationally, and a scalable operating margin—characteristics that are particularly valued in the acquisition of technology companies. For SaaS company sales processes, financial preparation and strategic positioning are key to securing valuation premiums.
Private equity as a driver of technology M&A
El Private Equity has led M&A activity in the technology sector in 2025, particularly in mid-market transactions.
The funds have focused on strategies aimed at sector consolidation, corporate professionalization, international expansion, and improved operational efficiency. The focus has clearly shifted toward “profitable growth,” prioritizing:
- Solid EBITDA
- Cash flow
- Proven business models
For companies considering a future sale, this means they need to prepare in advance by aligning their financial metrics and strategic narrative with investors’ criteria.
Venture capital focused on generative AI
The Venture Capital ecosystem has become more selective. Although investment volumes have declined, deals have focused on companies with proven traction, scalable business models, and practical applications of artificial intelligence. This shift reinforces a structural trend: the market no longer funds growth without a solid foundation.
For tech startups, this means that any futur sales or investor-raising strategy must be based on clear metrics and a defined path to profitability.
The role of M&A advisors in the technology sector
In an increasingly competitive and sophisticated environment, the role of M&A advisers specialising in technology has become critical. The process of buying and selling technology companies is no longer simply a matter of finding a buyer, but rather of defining the exit strategy, preparing the company (exit readiness), structuring the transaction, and maximizing value during negotiations.
In this context, Baker Tilly’s Tech M&A practice has established itself as a leader in Tech M&A advisory services in the Iberian market, standing out for its sector-specific expertise in software, IT, and telecommunications
The transactions advised in 2025 underscore the importance of having an expert partner to navigate the complexities of the market and unlock the full potential for value.
Opportunities in the M&A Market for Technology Companies in 2026
Looking ahead to 2026, everything points to the continuation of the main trends:
- Consolidation of the IT sector through strategic initiatives Buy-and-build
- Growing international interest in Spanish technology companies
- Focus on specialized software, cybersecurity, and artificial intelligence
- High liquidity in private equity funds
For tech entrepreneurs, the message is clear: now remains a particularly favorable time to prepare for a potential sale or growth through acquisitions. That said, success will increasingly depend on strategic preparation and access to the right advice. The M&A market for digital services in Spain has demonstrated by 2025 that technology is not just another sector, but the cornerstone of economic transformation.
In this new environment, opportunities to buy and sell technology companies will continue to grow, but so will the demands. To maximize value in any process, it is essential to anticipate trends, professionalize management, and rely on M&A advisors specializing in technology who can provide strategic vision, access to investors, and execution capabilities.